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The First Job Financial Checklist: Budgeting, Benefits, and Banking

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Starting your first job is an exciting milestone, and it comes with new financial responsibilities. To help you navigate this new phase of life, here’s a comprehensive financial checklist covering budgeting, benefits, and banking.

1. Budgeting

  1. Understand Your Income
    1. Salary: Know your gross income (before taxes) and your net income (after taxes and deductions).
    2. Pay Frequency: Determine how often you’ll be paid (weekly, biweekly, monthly).
  2. Track Your Expenses
    1. Fixed Expenses: Rent, utilities, phone bill, car payments, insurance, etc.
    2. Variable Expenses: Groceries, transportation, entertainment, dining out, etc.
    3. Occasional Expenses: Subscriptions, annual fees, or unexpected costs.
  3. Create a Budget
    1. Use budgeting tools or apps (like Mint, YNAB, or a simple spreadsheet).
    2. Allocate funds for essentials, savings, and discretionary spending.
    3. Aim to follow the 50/30/20 rule: 50% of your income to needs, 30% to wants, and 20% to savings/debt repayment.
  4. Set Financial Goals
    1. Short-term: Emergency fund, vacation, new gadget.
    2. Long-term: Saving for a car, house, or retirement.

2. Benefits

  1. Health Insurance
    1. Review your employer’s health insurance options.
    2. Understand what is covered, premiums, deductibles, and out-of-pocket costs.
  2. Retirement Plans
    1. Check if your employer offers a 401(k) or other retirement saving options.
    2. Take advantage of any employer matching contributions.
  3. Paid Time Off (PTO)
    1. Understand your vacation, sick leave, and personal days policy.
    2. Plan how to use your time off wisely.
  4. Other Benefits
    1. Life insurance, disability insurance, and wellness programs.
    2. Check for any tuition reimbursement or professional development opportunities.

3. Banking

  1. Set Up a Checking Account
    1. Choose a checking account for everyday transactions and a savings account for your emergency fund.
    2. Look for accounts with low or no fees and convenient access to ATMs.
  2. Consider Direct Deposit
    1. Set up direct deposit for your paycheck to simplify your banking.
    2. Ensure you know how to access your funds and any associated fees.
    3.  
  3. Use Banking Apps
    1. Download your credit union's app to easily track your balance, transfers, and spending.
    2. Set alerts for low balances or large transactions to monitor your finances effectively.


4. Additional Tips

  1. Build an Emergency Fund - Aim to save at least 36 months’ worth of living expenses for unforeseen circumstances.
  2. Start Investing Early - If you have extra funds after budgeting, consider investing in low-cost index funds or ETFs.
  3. Monitor Your Credit Score
    1. Check your credit score regularly and ensure you pay bills on time.
    2. Understand how credit scores work and how to improve them.
  4. Educate Yourself -  Read books, follow podcasts, or take online courses about personal finance to make informed decisions.gauge.


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